Nick Barisheff of Bullion Management Group (BMG) and author of $10,000 Gold: Why Gold's Inevitable Rise Is the Investor's Safe Haven (2013) returns to the show.
Our guest notes that portfolio diversification remains the hallmark of financial success, yet the typical stock / bond portfolio embraces inadequate asset weighting.
Proper diversification requires the adjustment of overall portfolio beta via negatively correlated assets to stocks / bonds.
Gold fulfills this requirement better than virtually any competing alternative investment.
According to research form BMG, the typical 60/40 stock and bond portfolio requires at least a 20% gold component to prepare for the coming market volatility - geopolitical instability.
By raising cash from selling overvalued investments, such as shares, Nick Barisheff proposes that the gold component will rise parabolically
Additional threats to investors include news that Saudi Arabia, China and Russia could continue to divest US dollar denominated assets and shun dollar based oil transactions.
This will further weaken the petrodollar arrangement while augmenting the appeal for sound money assets, such as gold and silver.
The theme has already occurred as evidenced by several new trade agreements.
Might this subtle yet sea change event share a correlation with the growing question homelessness epidemic facing the world's "wealthiest nation?"
Our guest derives the true value of gold as over $10,000 and advises monitoring the price of bullion gold for a divergence from the ethereal, paper contracts.
He further hypothesizes this event will occur at $3,000-$5,000 per ounce. Once this happens he suggests a startling price projection of $50,000 per ounce.
Nick Barisheff leaves the listener's with a valuable market axiom, "Put 10-20% into gold and hope it doesn't work."
The host likens gold to the ballast of a sailboat keel - no noteworthy captain would hoist the sails without first securing the keel - gold is the perfect keel ballast for every portfolio.
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